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Tag: Brass LNG

  • NNPC: We ‘ve only spent $1.2b on Brass LNG project

    Contrary to speculation that the Brass LNG has gulped $22 billion, the Nigerian National Petroleum Corporation (NNPC) has confirmed that the actual historical amount spent on the project from inception till date was about $1.2 billion against the alleged figure, a press release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, has said.

    Speaking on Wednesday at the House of Representatives Ad-hoc Committee investigating the expenditure and implementation of the $22 billion Brass LNG project, Engr. Ahmed Dikko, General Manager, New LNG Venture of the NNPC, said that the $1.2 billion was about the total money spent so far by the various shareholders to get the project to its current stage.

    “This sum included in the cost of acquiring project land, which covers approximately 606 hectres, cost of early works contract, Front End Engineering Design (FEED), Pre-FEED Concept Evaluation Study (PFCES), Project Environmental Impact Assessment (EIA), comprising both onshore and offshore studies, dredging, EIA activities and ambient noise survey, displacement and settlement action plan (FED-RAP), cultural site heritage study, staff and administration project cost from inception, sustainable development cost, among others”, he said.

    Engr. Dikko said that the project which was conceived and designed to assist in monetizing the nation’s abundant natural gas resources, reduce gas flaring, and create employment for the Niger Delta youth, was already at a critical point of Final Investment Destination before the pull out of its major partner, the Conoco Philips.

    He said as contained in the shareholders’ agreement, Conoco Philips, whose investment value was $192 million received only one dollar as entitlement.

    The General Manager, who noted that the exit of Conoco Philips was a serious setback, explained that the corporation’s decision to work with the company to deliver the project was due to its readiness to provide the needed technology to drive the process; while assuring that NNPC and the remaining shareholders had considered other simple options to bring the project alive.

    He clarified that the estimated amount to complete the project was far from what is being alleged, noting that NNPC deploys its negotiation capacity to extract value for the nation.

    “At inception, the project cost to build the plant was estimated at about $18 billion and not $22 billion, using Optimized Cascade Technology (A Conoco Philips LNG technology) of 2-train (10MTPA). However, this cost estimation was further revised downwards to about $16.5 billion CAPEX value in October, 2016 under project economics comparison that was carried out with PFCES of APCI Case Technology assumption”.

    Earlier in his remarks, the Committee Chairman, Hon. Jerome Amadi Eke, said that the essence of the meeting was to enable the Committee get the needed facts to deal with the petition and called for facility visit to confirm some of the projects as documented by the corporation.

  • Senate probes Brass LNG account

    Senate probes Brass LNG account

    The Senate yesterday mandated its joint Committee on Public Accounts and Gas Resources to carry out a holistic investigation into the activities of the Brass Liquefied Natural Gas (LNG).

    The upper chamber also asked the committee to probe alleged corruption that has taken place and report back within four weeks.

    The resolution followed a motion on alleged “Monumental corruption at the NNPC” raised by Senator Dino Melaye (Kogi West)

    Melaye, in his lead debate, noted that the Brass LNG was incorporated by the Corporate Affairs Commission on 9th December, 2003 and limited by shares of $1million.

    He observed that the shareholders of the company are: the Federal Government (N NPC) represented by  Mr. Funsho Kukpolokun with $490,000 shares, Philip Brass Limited whose address is in Cayman Island, British West Indies represented by Mr. R.L. Smith with a share capital of $170,000, Eni International B.V with address in Amsterdam, Netherland represented by Mr. A. Forzoli with share of $170,000 . The fourth shareholder, Chevron Texaco Brass LNG Limited with address in Bemuda represented by Mr. J.R. Pryor has a share of $170, 000.

    Melaye also observed that from the Corporate Affairs Commission (CAC) records, the following are Directors of the Company amongst other foreigners:

    Gauis Obaseki Jackson, Former GMD NNPC; Yukubu Andrew, Former GMD NNPC; Ibogomo Gbeyansa, Staff NNPC; Dawa Joseph Thlama, Staff NNPC; Ige David, Staff NNPC; and Mr. Buba Mohamman.

    He noted that that from the Memorandum of Understanding, the Brass LNG is supposed to be a Joint Venture Company with the NNPC having the controlling shares and their account domiciled with the Central Bank of Nigeria (CBN).

    Melaye said that he was surprised that “the account of this company is with Keystone Bank opened on 1st August, 2012 with account number 1005825168 a USA domiciliary account with a closing balance of USD 137, 086, 462:54 currently, while the sum of $ 648, 179, 487 was recorded as the account’s last inflow on 19th September, 2016 and a withdrawal of $4 million was effected on the 18th November, 2016 without BVN”.

    The Kogi West lawmaker noted that a lot of questions are begging for answers as regards the company: “The status of investment and principal objectives of the company? The Signatories to the Account? The status of the Federal Government investment? The returns on the investment? Was due process followed in the formation and appropriation of shares in the company?

    Melaye said that he convinced that there is an urgent need to define the position of the company viz-a-viz its operation, management and mandate in order to halt this seeming corruption.

    Chairman, Senate Committee on Gas, Senator Albert Bassey Akpan ,who seconded the motion, said that there was no cause for alarm.

    Akpan said: ” I wish to make explanations on the motion to the knowledge of Senate. Mr. President, this issue has been on the front burner of Committee on Gas since last year and we had engaged Nigeria National Petroleum Corporation ( NNPC)on this matter over the last couple of months and what we found out as a committee is that the said account exists and the name of the account is Brass LNG/Nigeria LNG account.

    “What this account does is that there was a presidential approval about few years ago or several years  ago to use the dividends on LNG as part of NNPC joint venture as a portion of NLG account.

    “What really happened was that when the Federal Government wanted the implementation of TSA, most of the banks had invested in dollars, account balances in their various transactions. The banks were insolvent. The said withdrawal of $3million and when the president directed Central Bank of Nigeria (CBN), we have looked into the matter.

    “So the only fund that came into the account which was about $3million was what was transferred to TSA and according to an aide to the president, this account has authorised signatories among which was the former GMD of NNPC Gauis Obaseki Jackson among others and the chairman of board of Directors to Brass LNG.”

     

     

  • APC candidate vows to complete Brass LNG

    APC candidate vows to complete Brass LNG

    •Thousands dump PDP for APC 

    The All Progressives Congress’ (APC’s) standard-bearer in the December 5 election, Chief Timipre Sylva, yesterday vowed to complete the Brass Liquified Natural Grass (BLNG) project, if elected.

    He addressed a crowd of party supporters and residents in Brass, his local government.

    It was a homecoming for Sylva, as thousands of his kinsmen from communities trooped out with their brooms and other APC campaign materials to welcome him and his campaign train, led by the Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri.

    Thousands of Peoples Democratic Party (PDP) members  declared for the APC.

    The ex-governor and his campaign train visited communities, including his hometown, Okpoma.

    At the carnival-like event, Sylva said he would focus on improving the economy through diversification and industrialisation.

    He said with the help of the APC-led Federal Government, he would resolve the problems in the Brass LNG project, which he noted would generate employment.

    His words: “This time, my vision for the state is clear. I will ensure Bayelsa becomes the economic hub in the Niger Delta and stands tall among the states.”

    Sylva told the people not to cry any more, saying with the APC government in the saddle, prosperity would be the lot of the state and the Brass people.

    He said: “The power to liberate Brass from the Dickson-led PDP, which has inflicted poverty and hunger on you, lies in your hands. Use that power to vote for the broom, the symbol of the APC, on December 5. Only those who hate progress will follow the dead party, PDP, to the grave.

    “Dickson is deceiving the people. He carries appointment letters in his pocket to deceive the people. Dickson has been going about giving people appointments without office and salary. Does he want the people to feed on the appointment letters?

    “PDP is in a pathetic situation. It is desperate to cling to power because it knows its tenure is ending soon. Dickson is deceiving the people to retain his occupancy of the Creek Haven, the seat of power. APC supporters are in the majority, the instrument of coercion is no longer in the hands of the PDP, hence nobody can intimidate you.”

    Lokpobiri accused the Dickson-led PDP government of impunity and anti-development.

    He said: “Before Sylva was ousted, he awarded the Nembe/Brass Road, but Dickson revoked the contract and collected N5.1 billion.”

    Lokpobiri promised that if elected, Sylva would re-award the contract to support the development of the BLNG project.

    He said he would work with him and use his ministerial position to develop the state, to make up for four years of hunger and poverty.

    “Since Ekeremor is giving 99 per cent, Sagbama, 99 per cent, Southern Ijaw, 99 per cent, Ogbia, 99 per cent, Yenagoa, 99 per cent, Kolokuma/Opokuma, 99 per cent, Nembe, 99 per cent, Brass, being Sylva’s hometown, must give 100 per cent votes in the December 5 election.”

    The lawmaker representing Brass Constituency I, Israel Sunny-Goli, said the support for Sylva and Igiri would be total.

    Sunny-Goli, the only legislator elected on APC’s platform, told Sylva that his people would not disappoint him.

  • Brass LNG, Bayelsa Oil Palm, others deserve attention, says Ogbotobo

    The National Coordinator, Legacy Forum (LF), Chief Frank Ogbotobo, has urged urgent attention to ensure the take-off of the Brass LNG, the Bayelsa Oil Palm and the state’s forgotten plastic industry.

    Ogbotobo, who is also a community leader, said the Peoples Democratic Party (PDP) capitalised on the Amnesty Programme to deny the region genuine development.

    Speaking in Yenagoa, he said the Nigerian constitution is clear on the issue of individuals or groups carrying arms against the state in any guise or pretence. He said any programme capable of encouraging such acts of criminality should be avoided by the new government.

    He said the government, in sincerity and transparency, should initiate the right moves to fulfill its obligation to the people of the region. According to him there is no mention of presidential amnesty programme in the Ogoni Bill of Rights or the Kaiama Declaration among other sets of demands of the various ethnic nationalities of the region.

    Ogbotobo said projects such as the Brass LNG, the Bayelsa Oil Palm, the two fishing trawlers abandoned in Bayelsa and the state’s forgotten plastic industry should worry freedom fighters in the state.

    He said: “Hence, we consider calls for the continuity of such a deeply flawed and corrupted presidential amnesty programme satanic, misleading and sabotage.

    “This administration should simply address the more urgent needs of the states of the the N/Delta.

    “Bayelsa for instance urgently needs, among other things, a minimum of eight additional LGAs, the kick-off of the Brass LNG and a seaport all of which will speedily arrest the challenge of youth unemployment in the state as well as the adjoining states.”

  • Shale oil won’t affect Brass LNG, says Obaseki

    Shale oil won’t affect Brass LNG, says Obaseki

    The Chairman, Brass LNG, Dr. Jackson Gaius-Obaseki, has assured stakeholders that the emergence of Shale oil in the United States (U.S.) will not affect the firm’s market.

    Gaius-Obaseki who is the former Group Managing Director, the Nigerian National Petroleum Corporation (NNPC) boss spoke when he led-delegation of the gas firm on a courtesy visit to the NNPC in Abuja yesterday.

    U.S. had exit the Nigerian oil import list following its Shale oil, having a negative impact on the nation’s market.

    According to Gaius-Obaseki, the firm is only re-strategising since it remains viable even in the face of Shale oil.

    Gaius-Obaseki said: “The reasons for conceiving that project are still relevant today; the market is still there, that is one of the things Shale gas or no Shale gas, the market is still there with a large appetite.”

    He argued that the firm had already diverted all it’s products from the U.S. before the advent of Shale oil.

    He however added that the Brass LNG will be impervious by the  Shale oil impact because Shale oil is different from Shale gas.

    Gaius-Obaseki said: “The Shale  oil is  different from the Shale gas. They also have domestic issues with their. But even when this came out, we had diverted all our products from the U.S. anywhere.”

    The Brass LNG boss, who said he was confident about the market stressed that he was not speculating but basing his submission on data fundamentals.

    “Shale or no Shale: I don’t speculate, and I work with data fundamentals,” said Gaius-Obaseki.

    He however said plans were underway for the  Brass LNG to change its technology, stressing that the “cascade technology” which the company had adopted belonged to  ConocoPhilips, one of its partners, who withdrew its interest from the firm.

    “When Conocophilips  exited, the remaining shareholders then sat down and said: well if you had problem where do you go to and the decision was then taken that we should change technology since Conocophilips has left with their technology and that is the reason, nothing more than that,”he added.

    He added that upon the withdrawal of ConocoPhilips from Brass LNG, the remaining shareholders are now NNPC, ENI and Total, who immediately  took over the shares of Conocophips.

    The chairman said aside  Conocophilips, no other buyer has left the company.

    Commenting on when the company would take its Final Investment Decision (FID), Gaius-Obaseki said the firm has not signed a purchase agreement which it would seal with the FID.

    He said: “ You are building plant, for you to build a plan, you must have the off-taker- people who will take the LNG from you. Conoco is left. As we speak today, there is no single buyer that has withdrawn. We have MoU with all of them . We have not signed a purchase agreement because we said we will do that at FID.”

  • NNPC tackles Brass’, OKLNG’s problems, others

    NNPC tackles Brass’, OKLNG’s problems, others

    The Nigerian National Petroleum Corporation (NNPC) is finding  solutions to the troubled multi-billion dollar Olokola Liquefied Natural Gas (OKLNG), Brass LNG, and  expediting action on the building of the NLNG Train 7 plant, which has been on the cards for years.

    The construction of OKLNG suffered a setback when three major shareholders in the project pulled out. The project was conceived in 2007 by NNPC, British Gas (BG), Chevron and Shell.  BG and Shell withdrew from the project in June 2012 and July, last year while Chevron withdrew in August, last year. With the withdrawal of these international oil companies (IOCs), NNPC is the  only  shareholder left  in the project.

    In 2012, ConocoPhillips, a major shareholder in Brass LNG, withdrew from the project and ever since, no significant progress has been made in the project. The Nigeria LNG Train 7 project has been on the table for a couple of years and yet the final investment decision (FID) is to be taken.

    The Group Executive Director, Gas and Power, NNPC, Dr David Ige, said the corporation was back to the table to see how it could bring these projects on course.

    He said this was line with the government’s policy and strategy to create value in the gas sector and keep Nigeria’s share of global LNG market at 10 per cent.

    Ige told The Nation, that the discussions were initiated to address problems, such as investments, regulatory and community issues, among others, facing the projects.

    He said the projects were critical to the growth of the domestic and international gas market, hence the decisions to address the problems. “We have concluded the exit of ConocoPhillps from Brass LNG. We have seen the exit of Chevron and Shell from Olokola Liquefied Natural Gas. We are back on the table to address all the problems hindering OKNLG, Brass LNG and Train 7 projects. On Train 7, stakeholders are working to move the project to the next stage.  We are back on the table to identify the potentials in the three projects, and galvanise them for economic growth,” he said.

    He also said the discussion would determine the government’s next  action, adding that the projects are of great importance to the economy.

    The General Manager, Development, Shell Petroleum Development Company (SPDC), Bayo Ojulari, said: “We don’t have fiscal terms for deepwater gas. A country as big as this with all the resources, we don’t have a term for deepwater gas, which means that deepwater gas is being stifled because the policy we need to put in place to allow people to participate has not been provided.”

    Earlier, NNPC’s Group Managing Director, Joseph Thlama Dawha, said the development of the huge gas resources in the country’s offshore would help in fostering the energy sector’s growth.

    “We are working on an integrated approach to ensure that much of the gas being found in deep offshore is made available for LNG projects, among others, so that the three LNG projects  will be fed from that opportunity.

    ‘’We are working on a master plan to do this and we have commissioned consultants to look at that. Thirdly, we are committed to making sure that gas is available and affordable domestically.

    “We have a necessity to ensure that all of these projects go ahead. That is a necessity mandated by the law. Whether it is Train 7 or Brass or OK LNG, we are consistently putting those projects forward because strategically, our policy towards LNG is to keep our market share up. So, strategically we are committed to that and as far as government policies are concerned, we will pursue this.”

  • Do something about Brass NLG

    Do something about Brass NLG

    I AM calling on President Goodluck Jonathan to do something about the long-awaited Brass LNG which I hope will create jobs for the teeming jobless youths in Bayelsa State.

    Please, Mr President do something urgently about this project in order to bring the suffering of our young people to an end.

    I am waiting to see our good president in action as far as this project is concerned.

    Lambert Oweifa,

    Nembe,

    Bayelsa State.

  • ‘Banigo’s kingship’ll enhance Brass LNG project’

    The inauguration of renowned banker, Ebitimi E. Banigo, as paramount ruler of the Okpoama Kingdom in Bayelsa State, will not only remain topicical for a long time but also quicken the completion of the multi-billion dollar Brass Liquefied Natural Gas (Brass LNG) project.

    Installed as Okpo XXl and the Amanyanabo of Okpoama Kingdom, one of the host communities of Brass LNG project, Banigo, according to industry operators, came at an auspicious time in the life of the project.

    As a boardroom guru and entrepreneur, the operators said he would not only boost the project but will usher in a new lease of life for the people of the Kingdom.

    With him at the inauguration was another key personality that will assist in successful execution of the project, a former Governor of old Rivers State and frontline leader and the paramount ruler of another host community of the project, Twon Brass, Amanyanabo Alfred Diete-Spiff.

    At the event was the Chairman of the Brass LNG Limited, Dr. Jackson Gaius-Obaseki. He expressed joy with the installation of Banigo as monarch, saying as a boardroom player, the monarch would, no doubt, strive to ensure a peaceful environment for business operation, which would be a catalyst to a successful execution of the project.

    Gaius-Obaseki, who is a a former group managing director of the Nigerian National Petroleum Corporation (NNPC), said the visit of President Goodluck Jonathan to the island to witness the installation of King Banigo was a testimony of the commitment of his administration to a successful execution of the project.

    He said Brass Island could be the commercial gateway to Bayelsa State and expressed confidence that when completed, the project would offer job opportunities to hundreds of indigenes of the community and the state.

    The Final Investment Decision (FID) on the two-train, 10 million metric tonnes per year project has been scheduled for the first quarter of next year, which Gaius-Obaseki confirmed at the company’s Eighth Annual General Meeting (AGM) in Abuja.

    The Nigerian National Petroleum Corporation (NNPC) holds 49 per cent equity in the company, and plans to divest about 30 per cent from it out of which five per cent will go to the Bayelsa State Government, while LNG Japan would take four per cent, Itochu Corporation, three per cent, and a joint venture between Nigerian indigenous company Sahara and France-based Sempra Energy would hold two.

    American oil group, Conoco Phillips, which is divesting its interest from Nigeria, French giant – Total and Italian company, Eni, hold 17 per cent stake apiece in the project.

    Under the Shareholders’ Agreement, the NNPC cannot divest its equity in the project until an FID has been taken; and towards the realisation of this (FID), a crucial meeting of the Board was held earlier last week. At the moment, efforts are in top gear to make sure that the FID was realised.

    Earlier, the Chairman of Okpoama Kingdom Council of Chiefs, Chief Wapaobinyo Amade-Obasi, noted that the coronation signals a transformation of the kingdom with its proud heritage into a world class global economy.

    In his address, Banigo pledged to work for the common good of the people. He noted that the kingdom is poised to provide the enabling environment for well-meaning investors to harness its abundant resources with a view to becoming an industrial hub especially in the gas and oil sector.

    King Banigo, who praised the efforts of President Jonathan and governors of flood affected states for alleviating the sufferings of internally displaced persons, also thanked those who contributed to the success of the event.